Wednesday, January 03, 2017 3.00PM / Proshare WebTV
Recently Proshare WebTV engaged Temitope
Babalola of the Proshare Economy Desk to share his perspective on the key
issues that will shape the Nigerian economy space in 2018.
He also gave his review of the year 2017 and
addressed the issues around unemployment in the country.
According to him, one of the major economic
developments that occurred in 2017 was the exchange rate reforms by the Central
Bank of Nigeria.
Speaking further, he said the economic output
grew significantly, and Nigeria exited the recession in Q2,2017 with a growth
rate of about 0.55%, which was revised to 0.9%. Babalola said the
growth sustained to 1.4% in Q3, 2017 which beat the forecast of the IMF
and World Bank of 0.8% and 1.2% respectively.
The Proshare analyst said “our external trade
also improved, exchange rate was favorable with the naira gaining. There
was successful expansion, improved output which was also very important,
external attribute merchandise, capital trade. Those are very substantial
factors and gives green light that the economic is quantitatively better off.”
Giving his perspective on addressing the high
unemployment rate (18.8%) he noted that industrial capacity and the
manufacturing sectors, should be a long term economic plan a country must
He said, as at 2016 Nigeria actually fell into
recession due to the cyclical factors that impacted most firms. According to
him “In an attempt to reduce their exposure to marginal compression, the
companies had to shed off a significant part of their workforce”.
Babalola opined that during a recession it takes a longer time to readjust
fixed cost and concluded that a country with low productivity will always face
the challenge of substantial high unemployment.
Proffering solutions he harped on the need
to drive productivity, stating that “productive economy is always driven
by infrastructure, the ease of doing business and proper legislations for
the business environment which is key”.
According to him, what can solve the rate of
unemployment is to get the real sector going, noting that the Oil sector which
grew by 25.5%, performed more than other key sectors.
Sectors like manufacturing, financial services ,
trade and ICT were within the bloodletting zone, while the construction sector
grew by about 0.4%. He was of the strong view that these sectors must thrive if
unemployment is to be tackled in the country.
He urged the Federal Government to take the
right policy approach, that will drive the real sector, attract foreign
investments, encourage the manufacturing and construction sectors, which will
go a long way in addressing the rate of unemployment in the country.